Epic Games is laying off 16 percent of its workforce and selling Bandcamp

Fortnite maker Epic Games is laying off 16 percent of its staff — or about 830 employees. CEO Tim Sweeney said in an open letter to sent employees that Epic Games has been spending “way more money” than it earns. “We concluded that layoffs are the only way,” he wrote “and that doing them now and on this scale will stabilize our finances.”

For those impacted by the layoffs, the company says it will offer a severance package that includes six months base pay and healthcare. Epic Games is also offering to accelerate employee’s stock option vesting schedule through 2024, while giving two additional years to exercise the options. About two-thirds of the layoffs affected teams outside of core development.

Sweeney wrote that Epic had been making an effort to reduce costs by not only freezing hiring but also by cutting spending on things like marketing and events. And while the metaverse is still in a conceptual phase, Sweeney said he wants the company to focus on developing infrastructure for its games to exist in the metaverse ecosystem. For example, Epic teamed up with LEGO to build an “immersive digital experience” for kids.